A Competitor Analysis helps you to understand your competition. It supports you in creating your unique position in the market. With this analysis you make an assessment of the strengths and weaknesses of your current and potential competitors. With a better understanding of your competition you can choose and implement effective strategies that will improve your competitive advantage.
Download the Competitor Analysis template to apply this tool. Use the tools to create an understanding of your competition. Download the example of Fleur Flowers to get an understanding of a Competitor Analysis.
With the Competitor Analysis you analyze your competitors’ strengths and weaknesses. This tool can easily be used by yourself, it does not require help from an expert.
Step 1: summarize your target group
Shortly describe your target group. Who are the customers that can benefit from your offering? Make the description as specific as possible. If your target group is businesses you can mention their size, industry or their offering. If your target group is consumers you can mention their age, goals, gender, education level or interests.
Step 2: identify your competitors
The next step is to identify your current or potential competitors. Write the names of maximum 3 companies that compete with you in the first three rows. To help you generate this list, think of what your customers would buy if they didn't buy your product or service. Where would they go if they cannot buy your product.
Step 3: determine competitors’ strengths and weaknesses
Now think like your customers. Why would a customer go for the services of your competitors instead of coming to your company? You can describe this by thinking about the offerings from your competitors. It would even be better when you visit your competitors and experience what their customers experience. Write down 3 strengths of each competitor. Also consider why customers would not go to your competitors. Write down 3 weaknesses of each competitor.
Step 4: describe the key findings
Finally, write in the 4th column of the template the key findings for the strengths. What does stand out? What patterns can you discover from your competitors? And which opportunities can you come up with? Also, write down your key findings for the weaknesses. What are the aspects that your competitors don’t do well? How do you avoid to make the same mistakes? What should you do to serve your customers in such a way that you differentiate from your competitors in a positive way?